Changes in labor law in Brazil. The new work week raises concerns among economists

Paulo Feldmann, professor of economics at the FIA Business School, quoted by “Times Brasil”, emphasizes that switching to a five-day system is crucial primarily for protection of human rights. The expert reminds that working 100 hours a week was the norm in the 19th century, and modern, major economies have long been operating on the basis of shorter working hours. Countries that continue to maintain excessive hours face international criticism.
The change is expected to bring not only image benefits, but also real ones productivity increase. “The natural consequence of this will be that companies will produce the same amount in less time,” Feldmann emphasizes, pointing out that Brazil currently has very low productivity rates. A shorter working week also means time for rest, study and less stress related to commuting. “People who work less will be more motivated,” he concludes.
Dark clouds over small businesses
Despite optimism about workers' rights, the economist is sounding the alarm about small companies, which constitute as many as 99 percent all enterprises in Brazil. Unlike giants, they do not have a solid operational structure that allows for easy reorganization of teams.
The situation is dramatic: now approx 70 percent small Brazilian companies close down before five years of operation. — This is one of the highest bankruptcy rates in the world. “Small companies will have serious problems,” Feldmann warns, predicting that without protection, the new reform could trigger a wave of bankruptcies.
Feldmann points out the structural weaknesses of the Brazilian economy. Small companies, despite their size, generate only 28%. GDP and account for only 1 percent. exports (for comparison in Italy it is 53%).
The expert believes that the survival of the sector will depend on radical changes in management and decisive state policy. He proposes that the government introduce specific support mechanisms:
- tax breaks for the smallest entities,
- access to cheaper credit lines,
- compensation systems in the transition period.




